Frax

FRAX is a dollar-pegged stablecoin that uses AMO smart contracts and permissionless, non-custodial subprotocols as stability mechanisms. The two internal subprotocols used as stability mechanisms are Fraxlend, a decentralized lending market and Fraxswap, an automated market maker

## Overview Frax is a dollar-pegged stablecoin protocol operating on Ethereum that combines algorithmic mechanisms with collateral-backed stability. Unlike traditional stablecoins that rely on centralized custodians or over-collateralization alone, Frax employs Algorithmic Market Operations (AMO) contracts and a two-tiered subprotocol architecture to maintain its $1 peg. The protocol was designed to address inefficiencies in existing stablecoin models: centralized reserves introduce counterparty risk, while pure algorithmic stablecoins have proven fragile under stress. Frax attempts a middle p